Tag Archives: Matt Henderson

In Fast Formulas #3: Pool Average Life with CPR Prepayments, I presented Formula 3.1, a shortcut calculation for the average life of a loan pool under a constant prepayment assumption. I mentioned that Formula 3.1 was derived by using “a … Continue reading →

After I saw Matt Henderson’s visual demonstration of how the geometric series 1/4 + 1/16 + 1/64 . . . adds to 1/3, I thought about how to generalize this for any geometric series. This led to a way to … Continue reading →

Matt Henderson of Cambridge (UK) has a terrific math blog that is full of very cool animations. Here is an example, showing that the infinite geometric series 1/4 + 1/16 + 1/64 + … adds to 1/3: His latest post … Continue reading →